Tesla cuts Model 3 price for second time this year Reuters

Daniel Fowler
February 7, 2019

That leaves the starting price of a Model 3 at $42,900, still substantially above the $35,000 price Tesla Chief Executive Officer Elon Musk originally promised.

Now, Tesla has updated its website to the new pricing which shows that once the federal tax credit of $US3,750 and a fuel savings (based on 10,000 miles and a cost of $US2.85 per gallon) are applied, United States drivers can buy the mid-range Model 3 for $US34,850 ($US49,049).

Ahead of the debut of several direct competitors and the disappearance of the $7,500 tax credit, the automaker has made fielding cheaper versions of the Model 3 a priority, in addition to driving down production costs.

Tesla ended its customer referral incentive plan on february 1 after Musk tweeted that the referral program was "adding too much cost to the cars, especially Model 3".

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Musk told a Twitter user that the company is "doing everything we can" to drop the Model 3 base price to $35,000, without credits.

Tesla didn't comment on why it stopped this loyalty program, however, customers still hope that the Model 3 vehicle will be available at a more accessible price soon.

The company is ramping up production of the Model 3 and trying to make it more accessible for mainstream vehicle buyers. "It's a super hard grind". All variants of the Model 3 will now start at $1,100 less, with the tradeoff being the end of the customer referral program.

Questioned by another follower as to how this would affect European prices - the first shipment of Model 3s having just arrived in Europe as of Tuesday - Musk responded that Value-Added Tax and import duties would result in a 30% higher price.

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